EBA Updates List of Other Systemically Important Institutions in EU
EBA updated the list of other systemically important institutions (O-SIIs) in EU. This list is based on end-2019 data and reflects the O-SII score and the capital buffers that the relevant authorities have set for the identified O-SIIs. O-SIIs and the global systemically important institutions (G-SIIs) are the institutions that are identified as systemically important by the relevant authorities, according to the harmonized criteria laid down in the EBA Guidelines.
The EBA Guidelines define the size, importance, complexity, and interconnectedness as the criteria to identify O-SIIs. They also provide flexibility to relevant authorities to apply their supervisory judgment when deciding to include other institutions, which might have not been automatically identified as O-SIIs. This approach ensures a comparable assessment of all financial institutions across the EU, whilst still not excluding those firms that may be deemed systemically important for one jurisdiction on the basis of certain specificities. EBA acts as the single point of disclosure for the list of O-SIIs across EU, while each relevant authority discloses information for its respective jurisdiction, along with further details on the underlying rationale and identification process. The list of O-SIIs is disclosed on an annual basis, along with any Common Equity Tier 1 (CET1) capital buffer requirements. Higher capital requirements will become applicable once relevant authorities decide to set institution-specific buffer requirements following the O-SII identification. For each O-SII, the list includes the overall score in terms of basis points resulting from the EBA scoring methodology.
Keywords: Europe, EU, Banking, CRR, Basel, Regulatory Capital, O-SII, Capital Buffers, EBA
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